Credible news wires including the South China Morning Post are reporting that Hong Kong leader Carrie Lam has agreed to withdraw a controversial extradition bill that triggered the months of serious protests in the island city that included the regular shutdown of its busy international airport.
In response to the news the Hang Seng index has surged 3.24% as at 16.35pm AEST as global futures also tick higher.
In other global geopolitical news overnight a 'no deal' Brexit in the UK now looks less likely after the UK parliament voted down the government and its plan to all but force through a 'no deal' option come October 31 if necessary.
Brexit and the Hong Kong shutdown have hit ASX travel stocks particularly hard over the past few months.
Corporate Travel Management Ltd (ASX: CTD) for example has major offices in Hong Kong and is down 31% over the past 6 months. It even flagged Hong Kong and Brexit as variables for what was some pretty strong EBITDA growth guidance for FY 2020.
The UK focused Webjet Limited (ASX: WEB) and Flight Centre Travel Group Ltd (ASX: FLT) have also been hit by the Brexit-rocked UK economy where a super-weak British pound is causing leisure travellers to keep putting off overseas holiday plans as Brexit is extended ever further out.
A Brexit resolution and rebounding pound would support all three travel businesses.
Brave investors can often make good money in buying good-quality businesses when sentiment around them is weakest, as such all three and their knocked-down share prices might be a buying opportunity.
